Transport Department

Policy Note - 2003- 2004

Demand No. 46

1. 0 Introduction

Tamil Nadu is in the forefront of the Indian Sub-continent in providing an efficient transport services to the people. Transport facilities is a basic ingrain in a modern society in bringi-ng people together and for the improvement of the society. The Government, with its Transport Corporations provides various types of services like Metro, mofussil, express, ghat services etc. to bring the people together from the nook and corner. Whether it rains or shines, efficient and safe transport operation is continuing in all the parts of Tamil Nadu by the State Transport Undertakings.

The Transport Department is having, under its control 18 State Transport Undertakings, Tamil Nadu Transport Development Finance Corporation, Pallavan Transport Consultancy Services Ltd., Institute of Road Transport, Chennai, and the Motor Vehicles Maintenance Department which is a Head of Department.

The Transport Department is also the Nodal Agency in the State Government in respect of projects implemented by the Southern Railway, Postal and Telecommunications Departments and the Civil Aviation Departments of the Government of , within the State of Tamil Nadu.

2. 0 State Transport Undertakings:

2. 1 Till 1971, State Transport operations were under the control of Tamil Nadu Government. After 1971, this was entrusted to the various Transport Corporations registered under the Companies Act, 1956.

The Pattabiraman Committee in 1976 and the Thillainayagam Committee in 1990 gave various recommendations for the improvement of the State Transport Undertakings and they were implemented wherever possible.

2. 2 As on 31.3.2003 the STUs are offering the following services and their performance is as below:

Chennai Metro – City services 2554

Town Services (in Districts) 5590

Mofussil services 5810

Express services

Inside State 524

Outside State 278

Ghat services 523 Total 15279

Spare buses 1391

1. Total Fleet Strength 16670

2. Total Kilometre operated per day (lakhKM.) 62.84

3. Total Passengers carried per day (in lakhs) 156.28

4. % Fleet utilisation 91.73%

5. Kilometre efficiency 97.55% (excluding specials)

6. Kilometre efficiency 100.89% (including specials) 7. % Occupancy ratio a) City & Town 68.35 % b) Mofussil 83.39 % c) Express 74.59 % d) Ghat 95.77 %

Average 76.18 %

8. Breakdown per 10,000 Km 0.28

9. Accidents per 1,00,000 Km 0.31 Total accidents 7206

Fatal accidents 1243

No of persons dead 1488

10. Fuel performance (KMPL) a) City & Town 4.19 b) Mofussil 4.58 c) Express 4.37 d) Ghat 3.44

Average 4.37

11. Engine oil per 10,000 Km 11.10 litres 12. Km run per condemned tyre 1.62(lakh Km)

13. Retreading Factor 4.12

14. Men per bus including workshop 7.64

2. 3 Amalgamation of State Transport Undertakings:

In order to reduce the administrative overhead and to avoid wasteful competition in the operation of services among the corporations, it was decided to amalgamate the various Transport Corporations. Amalgamations in respect of Metropolitan Transport Corporation-2 with Metropolitan Transport Corporation-1, Tamil Nadu State Transport Corporation (Coimbatore Division 3-Uthagamandalam) with Tamil Nadu State Transport Corporation (Coimbatore Division 1-Coimbatore) and State Express Tramsport Corporation (Tamil Nadu Division 2) with State Express Transport Corporation (Tamil Nadu Division 1) have been completed with effect from 10.01.2001, 07.11.2000 and 12.1.2002 respectively. The final approval from Government of India is awaited. The name of the Corporations, which are under amalgamation, and their present stage of amalgamation and the name of the amalgamated corporations are as detailed below.

Name of the S No Name of Corporation amalgamated Corporations Remarks

Metropolitan Transport 1 Corporation (Chennai- Merger completed Metropolitan Division I) Ltd., Chennai. w.e.f. 10th January Transport 2001. Corporation Metropolitan Transport (Chennai) Ltd. Corporation (Chennai- Chennai. 2 Division II) Ltd., Chennai.

State Express Transport 3 Corporation (Tamilnadu Merger completed State Express Division I) Ltd, Chennai w.e.f. 12th January Transport 2002. Corporation (Tamilnadu) Ltd, State Express Transport Chennai 4 Corporation (Tamilnadu Division II) Ltd, Chennai

Tamilnadu State Tamilnadu State Transport Corporation Transport 5 (Villupuram Division I) Corporation Ltd, Villupuram (Villupuram) Ltd, Villupuram Tamilnadu State Transport Corporation 6 (Villupuram Division II) Final orders of the Ltd, Vellore Government of India is awaited. Tamilnadu State Transport Corporation 7 (Villupuram Division III) Ltd, Kanchipuram

Tamilnadu State Transport Corporation 8 (Salem Division I) Ltd, Tamilnadu State Final orders of the Government of India Salem Transport is awaited Tamilnadu State Corporation Transport Corporation (Salem) Ltd, 9 (Salem Division II) Ltd, Salem Dharmapuri

Final orders of the Tamilnadu State Government of India Transport Corporation 10 on merger of Division (Coimbatore Division I) II with Division I is Ltd, Coimbatore awaited.

Tamilnadu State Tamilnadu State Transport Corporation Transport 11 Merger of (Coimbatore Division II) Corporation Coimbatore Division- Ltd, Erode (Coimbatore) Ltd, III, Coimbatore (Uthagamandalam) Tamilnadu State with Coimbatore Division-I, Transport Corporation (Coimbatore) (Coimbatore Division III) completed w.e.f. 7th 12 Ltd,Uthagamandalam. Nov.2000.

Tamilnadu State Tamilnadu State Transport Corporation ( Division Transport 13 I) Ltd, Kumbakonam Corporation (Kumba- konam)Ltd, Kumbakonam Tamilnadu State Transport Corporation (Kumbakonam Division 14 II) Ltd, Trichy Final orders of the Tamilnadu State Government of India Transport Corporation is awaited 15 (Kumbakonam Division III) Ltd, Karaikudi

Tamilnadu State Transport Corporation (Kumbakonam Division

16 IV) Ltd, Pudukkottai

Tamilnadu State Transport Corporation 17 (Madurai Division I) Ltd, Madurai

Tamilnadu State Transport Corporation (Madurai Division II) Ltd, 18 Tirunelveli

Tamilnadu State Transport Corporation Tamilnadu State Final orders of the 19 (Madurai Division III) Transport Government of India Ltd, Nagercoil Corporation (Madurai) Ltd, awaited Tamilnadu State Madurai Transport Corporation 20 (Madurai Division IV) Ltd, Dindigul

Tamilnadu State Transport Corporation 21 (Madurai Division V) Ltd, Virudhunagar

After amalgamation, the existing 18 Transport Corporations will be merged into 7 Corporations bringing down the overhead costs and unnecessary competitions among the corporations enabling them to earn profit.

3. 0 Financial Position of the State Transport Undertakings:

3. 1 Due to increase in the establishment and operation costs, the overall expenditure of the State Transport Undertakings have continuously increased. On the other hand, as there was no fare revision, the income did not increase. As such all the State Transport Undertaking were continuously incurring loss. The accumulated loss up to March 2003 (provisional) is Rs. 2150.53 Crores. The reason for this heavy loss is due to the large gap between the income and expenditure.

3. 2 Increase in Diesel cost

The Government of India periodically revises the price of the Petroleum products depending upon the varying global prices. But the bus fare is not raised periodically to commensurate with the increase in the cost of the Diesel and other petroleum products. The expenditure on consumption of diesel for the buses of State Transport Undertakings has gone up from Rs.229.22 Crores in the year 1991-92 to Rs.1061.31 Crores (provisional) in the year 2002-2003.

3. 3. Increase in Establishment Expenditure

Wage revisions are given to the employees of the Corporation through negotiated settlement. The average increase in emoluments for an employee in State Transport Undertaking on account of settlement effected from 01.09.1998 was Rs. 835 per month and the total additional commitment per annum was Rs. 231 crores. The establishment cost accounts for nearly 38% to 53% of the traffic revenue.

The establishment expenditure has been going up very steeply every year, even though there has been no appreciable increase in staff strength. The establishment cost which was at the level of Rs.388 Crores in the year1991-92 has gone upto Rs. 1366.10 Crores (provisional) in the year 2002-03.

3. 4 Extent of coverage of expenditure

The State Transport Undertakings have not been able to increase the revenue on par with the increase of expenditure on establishment, diesel and other input costs. The Government of India have revised the price of Petroleum products many times since December 2001 when the bus fare was last revised. However, the State Government has not increased the bus fare after December 2001. Hence, the gap between the revenue and expenditure has been persistent.

3. 5 Outstanding Liabilities

In order to keep up the operations, the State Transport Undertakings have to depend upon external borrowings, postpone the payment to suppliers of fuel, spares etc, and commit default in payment of statutory liabilities and accident compensation. The State Transport Undertakings have fallen into debt trap. The financial institutions are not prepared to extend any further loan to the State Transport Undertakings because of higher loan burden.

The State Transport Undertakings have virtually landed in financial mess with heavy outstanding liabilities towards the supply of fuel, spares and statutory dues. The position as on 31.03.2003 is given below:

Particulars Rs. in Crores HSD oil and Lubricant 71.95 Suppliers of spare parts, tyres etc 38.60 Accident compensation to be remitted to Courts 57.37 Statutory dues like Provident Fund, Gratuity, 256.96 Recoveries from Employees Others 5.79 TOTAL

Due to financial difficulties, the State Transport Undertakings are unable to replace the over aged buses in time and also to procure spares to keep the operation going.

Over the years, the accumulated losses of State Transport Undertakings have gone up steadily. The accumulated loss upto 31.03.2003 is Rs.2150.53 Crores. The State Transport Undertakings have an accumulated liability of Rs.430.67 Crores as on 31.03.2003 towards Diesel, Spare Parts, Statutory Liabilities and Accident Claims etc. As on 31.03.2003, a Loan of Rs.975.69 Crores is outstanding to Financial Corporations. Due to precarious financial position, most of the State Transport Undertakings were unable to pay interest and principal due before fare revision. The amount defaulted in the current year upto 31.03.2003 alone is Rs. 213.07 Crores. The interest commitments to State Transport Undertakings have gone up from Rs.77.77 Crores in the year 1995-1996 to Rs.141.30 in the year 2002- 2003.

4. 0 Replacement and increase in fleet strength:

The State Transport Undertakings could not purchase adequate number of new buses for replacement during the past few years due to heavy loss incurred by the State Transport Undertakings. The number of over-aged buses to be replaced as on 31.03.2002 was 6123 buses which is 36.5% of the total fleet. Due to the efforts taken by this Government, the State Transport Undertakings were able to purchase 1047 new buses during the current year upto March 2003, out of which 1031 new buses have already been put on road. The balance 16 buses are under construction as on 31.3.2003. Hence the number of buses which has to be replaced as on 31.03.2003 is 6376 Buses, which is 38.2% of the total number of buses. It has been proposed to purchase 300 buses during the year 2003-2004 at a cost of Rs.30.00 Crores by the loan amount to be extended by Transport Development Finance Corporation.

5. 0 Comparison of Fare structure prevailing in other States:

The accumulated heavy losses and the increased cost of the inputs in operation lead the State Transport Undertakings to a grave financial situation, which necessitated for the revision of fare. Hence, the Government with a view that the State Transport Undertakings should run self sufficiently without any external loans, marginally increased the bus fare with effect from 6.12.2001.

Even then, the fare in Tamil Nadu is the lowest when compared with the fare structure in the adjacent states. The present fare structure for Mofussil services in Tamil Nadu with comparative figures of other important neighbouring States is given below:

(In Paise per K.M.)

State Fare Effect Mofussil Mofussil Mofussil Deluxe Super from (Ordy) (LSS) Express Deluxe

Tamil Nadu 6.12.2001 28 - - 32 38 Andhra 4.2.2003 35 - 40 45 52 Kerala 1.10.2001 35 43 46 54 63 Karnataka 13.4.2003 30.25 - 37.25 45.00 55.00

It may be seen from the above table that the fare in Tamil Nadu is still lower than the neighbouring States.

6. 0 ROAD SAFETY AND PREVENTION OF ACCIDENTS

The accident compensation commitment has gone up drastically from Rs.16.03 Crores in the year 1991- 92 to Rs.104.12 Crores (provisional) in the year 2002-2003. Hence, the Government gives much more importance for accident prevention measures to reduce the road accidents involving State Transport Undertaking buses. This Government gives primary importance to road safety, reduction and avoidance of accidents. The role of the drivers are very important in avoiding accidents. Regular refresher trainings, Yoga, safety clinics, brain storming sessions in driver training schools, safety driving award schemes, special increment to the drivers who performs duty without any accident for 10 years etc. are some of the measures taken by the State Transport Undertakings to ensure safe driving by the drivers of State Transport Undertakings. The Institute of Road Transport selects young and energetic youths who have completed SSLC for an intensive 12 weeks training on driving heavy transport vehicles. They are also trained in attending to repairs in the heavy vehicles, first aid etc. They are given priority for appointment in State Transport Undertakings. The Government have also ordered pass in SSLC / 10th Std. instead of 8th Std. as Minimum Educational Qualification for appointment of drivers in State Transport Undertakings. In certain State Transport Undertakings, 2 drivers have been introduced for driving the long distance vehicles during night journeys to reduce driver's fatigue.

7. 0 AMENITIES TO THE TRAVELLING PUBLIC:

In certain important bus stands and bus stops in Chennai City and other important cities, glow sign advertisements have been provided for better security of passengers. Inter-transfer facilities have been provided in certain bus terminals for parking the two wheelers of the commuters. As the operation of Metro and long distance buses have been shifted to the new Chennai Metropolitan Bus Terminus at Koyambedu, the Metro Transport Corporation has introduced many buses in new routes to enable the commuters to reach the Koyambedu Bus Stand. As the operation of the Moffusil buses and long distance buses have been shifted from the Broadway Mofussil Bus Terminus and State Express Transport Corporation Bus Stands at Parrys Corner, the various Metropolitan Transport Corporation buses which were hitherto stopped in and around Madras High Court on the road as a hindrance to the traffic, have been shifted inside the Old Moffusil Bus Terminus and State Express Transport Corporation Bus Terminus. Hence the traffic congestion in this area has been heavily reduced and passengers safety and amenities have been enhanced.

8. 0 TRAVEL CONCESSIONS

In Tamil Nadu, concessions for travel in the buses of State Transport Undertakings, are being given to some categories. They are - Members of Legislative, Members of Parliament, ex-Members of Legislative and Council, Students, Accredited Journalists, Drama Artistes, Freedom fighters drawing Central/State pension and those who participated in Border/Language stir or widows and legal-heirs of freedom fighters drawing Central Pension or State Pension or wife or husband and minor legal-heirs of those who participated in the language stir to protect the and who are receipients of financial assistance from Government, Cancer patients, Physically handicapped, Deaf, Blind, Mentally retarded and epileptic patients.

8. 1 Student Concession During the current year State Transport Undertakings, requested reimbursement of a sum of Rs.252.00 crores towards student subsidy. However, due to the stringent economic position of the Government, the Government have proposed to release a sum of Rs.85.76 crores alone as reimbursement of student subsidy to three very sick State Transport Undertakings and have requested other State Transport Undertakings to meet this amount as social cost.

During the year 2002-2003, 23,44,068 students were benefited by this concession. The State Transport Undertakings are usually accepting the balance cost of the student concession apart from the amount collected from them and subsidy received, as social cost for the welfare of the students.

9. 0 CONCESSIONS TO COMMUTERS

For the benefit of general passengers, Monthly Season Tickets are issued collecting the LSS fare equivalent to 40 trips from the origin to destination for travel up and down on all days in a month in the Metro and Town services.

Travel As You Please Tickets (only in MTC)

Passengers can travel anywhere in the city by purchasing tickets at the following rates subject to the conditions printed in the ticket.

1) Holiday one day ticket : Rs. 30/-

2) Weekly ticket : Rs.160/-

3) Monthly ticket : Rs.600/-

10.0 Labour Welfare Measures

The State Transport Undertakings have evolved various schemes and are implementing them for the welfare of the workers' and their families.

Service weightage

Free Travel passes to the children of the employee

Subsidised canteen facilities

Education allowances

Allowances with wages

Reimbursement of legal fees

Uniform

Family Benefit Fund

Funeral expenses. Marriage Loan

Steering Allowance

Voluntary Retirement Scheme

Leave benefits

Holiday Home

Special Health Fund Scheme

Medical College, Engineering College and Polytechnics for the benefit of the children of employees

Employees' Post-Retirement Benefit Fund Scheme

The Pension schemes for Transport employees

11. 0 Phased LIBERALISATION:

In Governor's Address and budget speech for the year 2002-2003, Government announced a policy decision that it has proposed to go in for phased liberalisation of select routes services and operations in the bus transport sector.

The High Level Committee constituted to work out the modalities for phased liberalisation and restructuring of State Transport Undertakings, after a detailed deliberation has submitted its report. Based on the recommendations, a detailed and in-depth discussions was held on its recommendations and considering all other relevant facts and figures and the need to introduce competition to improve the efficiency of the transport system and benefit of the public, the Government is examining the liberalisation of select routes and services.

A Committee for the identification of services for transfer from State Transport Undertakings to private operators through open tenders and to fix the upset price for selected services has been constituted.

The Government therefore decided to modify the Area Scheme in such a way that the permits transferred to the private operators by the State Transport Undertakings are excluded from the Area Scheme of Nationalisation and draft notifications amending the Area Scheme was notified in the Gazette on 12.11.2002. The hearing date was fixed on 17.12.2002. Meanwhile, certain individuals filed Writ Petitions before the High Court challenging the draft notifications. Now the matter is pending before the High Court. As soon as the verdict of the Court is received, further action will be taken.

12. 0 Action taken to improve the efficiency of State Transport Undertakings in the past two years.

12. 1 Reduction in loss:

The State Transport Undertakings were incurring heavy losses because of low fare structure and high costs of operation which were not adequately compensated by the fares. The loss incurred by the State Transport Undertakings during the year 2001-02 upto November 2001 was Rs.194.21 Crores and they were having huge liability towards HSD supplies, supply of spare parts, as well as statutory dues like Provident Fund, gratuity, employees Credit Society dues, accident claims etc. as well as dues to Transport Development Finance Corporation. The Government revised the bus fare from 1.12.2001 to compensate the increased costs of operation and the same was marginally reduced from 6.12.2001. The financial position of the State Transport Undertakings improved slightly after the fare revision and the State Transport Undertakings have incurred a loss of Rs.98.86 crores for the year 2001-2002 as against the earlier loss of Rs.228.86 crores before fare revision. For the year 2002-2003, the State Transport Undertakings have incurred a loss of Rs.20.50 crores (provisional) in spite of frequent revision of HSD price by Oil companies. Introduction of new buses, have helped to improve the operational efficiency of the State Transport Undertakings and provide better service to the travelling public.

12. 2 Amalgamation

There were 21 State Transport Undertakings in Tamilnadu and the Government decided to amalgamate the State Transport Undertakings into 7 State Transport Undertakings to improve operational efficiency by reduction of overhead costs, utilisation of the infrastructure facilities effectively and avoiding unhealthy competition among State Transport Undertakings. As a first phase, Metropolitan Transport Corporation-1 & 2, State Express Transport Corporaion-1 & 2, Tamil Nadu State Transport Corporation- Coimbatore and Uthagamandalam have been merged. The final orders for amalgamation of 16 State Transport Undertakings into 5 State Transport Undertakings are awaited from Company Law Board, Government of India.

12. 3 Purchase of new buses by STUs

It was proposed to purchase 1550 new buses at a cost of Rs.150 crores out of which 3 State Transport Undertakings have already purchased 263 new buses upto Decmber 2001. All the State Transport Undertakings have purchased 1047 new buses during April 2002 to March 2003, with the loan assistance provided by Transport Development Finance Corporation Limited. Metropolitan Transport Corporation has introduced 127 EURO-2 Buses and this has helped to reduce pollution in Chennai city. Tenders have been called for the purchase of 534 New Buses during this year.

12. 4 Steps taken to improve the Operation of buses:

As the State Transport Undertakings are having large number of overaged vehicles due to inadequate replacement of buses during previous years, the operational efficiency has come down. In order to improve the efficiency and create awareness among employees, the following weeks were observed from July 2001.

Maintenance week for improving the body condition of the buses. b. Maintenance week for improving the Mechanical condition of the buses by concentrating on preventive maintenance. c. Breakdown free week to ensure that enroute breakdown of buses are eliminated completely. d. Safety Week to ensure prevention of accidents and safety of passengers. e. Courtesy Week to educate Drivers and Conductors for behaving politely with the passengers. f. Mass Checking to avoid ticketless passengers and to improve the revenue. g. Inter Corporation checking to improve the revenue by effective line checking.

The above steps have helped to improve the operational efficiency, body condition of the Buses and improve the revenue.

12. 5 Reduction in accident:

In view of the continuous action taken for the safe operation of buses, the accident ratio has come down very much. Details 2000-2001 2001-2002 2002-2003 Total accident 0.39 0.37 0.31 (for one lakh KM operation Fatal accident 1401 1322 1242 No. of persons 1706 1661 1488 died

12. 6 Austerity measures:

In order to reduce the cost of operation, various austerity measures have been undertaken by the State Transport Undertakings. a. Recruitment of further staff in all categories has been stopped including replacement for retired employees.

b. Creation of new posts has been banned in all categories.

c. Promotions have been stopped in Managerial cadre.

d. In order to reduce the expenditure on accident claim compensation, the State Transport Undertakings have been instructed to settle the claims through Lok adalat.

12. 7 Award received by STUs:

For the year 2001-2002 Tamil Nadu State Transport Corporation-Tirunelveli has bagged the award for Best improvement in consumption of Diesel Kilometer per litre from Association of State Road Transport Undertakings at New Delhi.

12. 8 Achievement in collection of fare: By the special action taken by State Transport Undertakings during the year 2002-2003, they have achieved an one time high collection of Rs.11.20crores on 20-1-2003. Similarly, the collection by certain State Transport Undertakings on 20-1-2003 was the highest for them from their date of inception. The collection details on 20-1-2003 is given below:

State Transport Total Collection (Rs. Remarks Undertakings in lakhs) Metropolitan Transport 107.37 Corporation Limited State Express Transport 66.00 Corporation Limited Tamil Nadu State 109.29 Highest collection Transport Corporation, Villupuram. Tamil Nadu State 58.77 Transport Corporation, Vellore Tamil Nadu State 58.70 Transport Corporation, Kanchipuram. Tamil Nadu State 70.09 Highest collection Transport Corporation, Salem/ Tamil Nadu State 57.70 Highest collection Transport Corporation, Dharmapuri. Tamil Nadu State 86.74 Transport Corporation, Coimbatore. Tamil Nadu State 80.48 Highest collection Transport Corporation, Erode. Tamil Nadu State 61.73 Transport Corporation, Kumbakonam. Tamil Nadu State 75.05 Highest collection Transport Corporation, Tiruchy. Tamil Nadu State 40.24 Transport Corporation, Karaikudi. Tamil Nadu State 27.14 Transport Corporation, Pudukottai. Tamil Nadu State 54.34 Transport Corporation, Madurai. Tamil Nadu State 53.50 Highest collection Transport Corporation, Tirunelveli. Tamil Nadu State 36.46 Transport Corporation, Nagercoil. Tamil Nadu State 52.06 Transport Corporation, Dindigul. Tamil Nadu State 24.31 Transport Corporation, Virudhunagar. Total 1119.97 Highest collection

13. 0 ACTION TAKEN ON THE ASSURANCES :

As announced that the Government will go in for phased liberalisation, a High Level Committee formed by the Government has given its report to the Government. The Government have accepted this report and are examining the phased liberalisation of select routes and services.

It was earlier announced, that expeditious action will be taken for the amalgamation of the 18 State Transport Undertakings into 7 State Transport Undertakings. This Government has taken sustained efforts with Government of India and their final orders are awaited. As soon as the final orders are received from the Government of India, these corporations will be amalgamated into 7 corporations bringing down the establishment cost and unhealthy competition.

To avoid air pollution it was announced that the old buses will be replaced with pollution free new buses having Euro-2 norms engines. It was announced that in Chennai city alone, 200 new buses of these types will be introduced. In the current year 117 buses of this type have been introduced in Chennai city alone. Further, 10 new buses with low steps for the benefit of the aged and children is under construction.

During the policy discussion of the Transport Department for the year 2002-2003 it was announced that a time bound programme for improving the operational efficiency, financial results, maintenance and road-safety standards will be introduced. Based on that, instructions have been issued to the Managing Directors of all the State Transport Undertakings for improving the efficiency of the Corporations. Intensive ticket checking and increasing the revenue of the Corporation, preventive maintenance of the corporation buses, reducing the consumption of fuel, reducing unnecessary posts, bringing discipline among the staff, getting additional revenue by the efficient use of transport infrastructure, are some of the measures taken by this Government to achieve this goal.

14. 0 TAMIL NADU TRANSPORT DEVELOPMENT FINANCE CORPORATION LIMITED

The Tamil Nadu Transport Development Finance Corporation Limited (TDFC) was established in March 1975 in order to cater to the financial requirements of State Transport Undertakings for purchase of chassis, body building, the setting up of workshops, working capital, etc., charging a lower rate of interest by mobilising public deposits. Authorised share capital of Tamil Nadu Transport Development Finance Corporation is Rs.70.00 Crores. The paid up share capital is Rs.61.73 Crores, out of which Government have contributed Rs.43.03 Crores and the State Transport Undertakings have contributed Rs.18.70 Crores. Tamil Nadu Transport Development Finance Corporation has been making profits since its inception. The profit earned in the last 5 years is as follows:

(Rs, in lakhs)

Year Profit before Income tax Profit after tax tax 1998-99 1541.62 541.00 1000.62 1999-2000 2134.58 900.00 1234.58 2000-2001 1821.38 800.00 1021.38 2001-2002 1185.40* 490.00 695.40 2002-2003 766.20** 270.00 496.20 (revised estimate)

* After waiver of overdue interest from three State Transport Undertakings for Rs.22.23 crores.

** Rs.15.00 crores provided for waiver of interest due from the sick State Transport Undertakings.

The deposits of Transport Development Finance Corporation Ltd., as on 31.03.2003 is Rs.912.36 Crores. Financial assistance extended by Transport Development Finance Corporation since its inception upto 31.03.2003 is Rs.4931.18 Crores. With the financial assistance extended by Transport Development Finance Corporation the State Transport Undertakings have so far purchased about 32725 new buses.

15. 0 PALLAVAN TRANSPORT CONSULTANCY SERVICES LIMITED

Pallavan Transport Consultancy Services Limited was incorporated in April 1984 as a wholly owned company of Government of Tamilnadu with an authorised capital of Rs.5.00 lakhs and paid up capital of Rs.2.00 lakhs. Subsequently in May 2000 the paid up share capital was increased to Rs.10.00 lakhs with the authorised share capital of Rs.50.00 lakhs. The activities of the company is supervised by seven Board of Directors including Chairman appointed by the Government of Tamilnadu. The day- today affairs of the company are looked after by a full time professional Managing Director.

Pallavan Transport Consultancy Services Limited offers consultancy services in the areas of Software Development, Management, Information Technology and Traffic and Transportation by a core team of qualified and experienced consultants in the respective fields. The core team is supported by the experts. Further by engaging personnels from Institute of Road Transport, Highways and retired Government executives with experience and utilising the services of the Professor / Faculty of Anna University in the relevant areas on job to job basis as and when required. Pallavan Transport Consultancy Services Limited is participating in tenders as consortium by associating with reputed consultancy organisation with rich experience in the relevant fields.

Pallavan Transport Consultancy Services Limited has grown since its inception in 1984 despite the competitive nature of consultancy business. Good potential exists in the fields of Information Technology, Infrastructural Development in Road Transport Sector and Management Services. Efforts are being taken to expand business in these areas. Pallavan Transport Consultancy Services Ltd. had bagged a prestigious turnkey project of Comprehensive computerisation for Commercial Taxes Department, Government of Tamilnadu. This project includes software development and implementation, procurement of hardware and system software, network design and tendering. Other ongoing assignments includes software development for Association of State Road Transport Undertakings, New Delhi, software development and creation of Employee Database for Department of Public Health and Preventive Medicine (A DANIDA Assisted Project).

16. 0 INSTITUTE OF ROAD TRANSPORT

The Institute of Road Transport is a registered Society under the Indian Societies Registration Act 1860. This institute has entered its Twenty-seventh year in 2002-2003 and continue to expand its services. The Institute undertakes applied research on issues pertaining to Road Transport, do quality monitoring by conducting tests on random samples of automobile spare parts purchased by the State Transport Undertakings in Tamil Nadu, besides engaged in imparting training activities on a large scale.

The Automobile Research Oriented Engineering College known as Institute of Road and Transport Technology was started in 1984 at Erode under the ageis of Institute of Road Transport. The Perundurai Medical College and Hospital set up, as per the scheme formulated in 1986, is functioning at its own premises at Perundurai, from the academic year 1992-1993 under Institute of Road Transport control. Further, the Institute of Road Transport has also started three Polytechnics one each at Chrompet (Chennai), Bargur and Tirunelveli in 1992-1993. Both in the Polytechnics and in the Engineering College, 50% seats are being filled up by the employees children on merit. As far as Perundurai Medical College is concerned, out of 60 seats, the Government fill up 40 seats under the Single Window system and the balance 20 seats are being allotted to the wards of employees. These institutions are being maintained out of the accrued interest earned on Interest Free Loan contributed by the employees of the State Transport Undertakings and all the capital expenditures incurred for the above colleges are met out from the Special Contributions received from the State Transport Undertakings only.

During the year 2002-2003, a sum of Rs.100 lakhs by Tamil Nadu State Transport Corporation, Villupuram, a sum of Rs.50 lakhs by Tamil Nadu State Transport Corporation, Dharmapuri, a sum of Rs.100 lakhs by Tamil Nadu State Transport Corporation, Erode and a sum of Rs.50 lakhs by Tamil Nadu State Transport Corporation, Tiruchy. totalling to Rs.3 crores has been given as special contribution to Institute of Road Transport

The Institute of Road Transport is also running a Driver Training School at Gummidipundi and also at 14 Regional Centres in Tamil Nadu imparting training in Driving Heavy Vehicles. Upto 2001-2002 around 33893 persons have been trained as Drivers and during the current year around 2778 persons have undergone training. Further, the Institute of Road Transport has started one Driver Training Centre at Chrompet for giving driver training in light motor vehicle and in two wheelers and one Driver Training Centre at for giving training in driving both light and heavy vehicles during 1997.

The Institute of Road Transport is also acting as a nodal agency to help Tamil Nadu State Transport Undertakings in the purchase of major items like Chassis, printed tickets, Tyres, Retreaded materials, etc.

17. 0 MOTOR VEHICLES MAINTENANCE DEPARTMENT

Tamil Nadu Motor Vehicles Maintenance Department is a Service Department and undertakes maintenance and repair of all Government Department vehicles. The number of such vehicles for which this Department is responsible for the maintenance and upkeep is about 10,100. There are 20 Government Automobile Workshops in the District Headquarters throughout the State and a Service Station at Chennai inside the Secretariat compound for this purpose. There are three Regional Deputy Directorates one each at Chennai, Salem and Madurai for the effective supervision and functioning of the works at these Workshops.

This Department is operating two Consumer Petrol Bunks at Chennai, one at Nandanam and the other in the Secretariat compound and one each at , Madurai, Salem, Coimbatore, Trichy, Dharmapuri, Cuddalore and Nagercoil for the supply of fuel and other lubricants to the State Government Departmental vehicles in and around those places.

18.0 RAILWAYS AND POSTAL etc.

The Transport Department is the Nodal Agency in the State Government, co-ordinating with the Railways, Postal, Telecom and Civil Aviation Department of the Government of India on their Projects implemented within the State of Tamil Nadu. The land requirement proposals given by these Government of India organisations are co-ordinated with the District Collector/Commissioner of Land Administration etc., and the lands are acquired and handed over to them for starting their projects.

Apart from the other ongoing projects implemented by Railways in Tamil Nadu, the following projects are implemented on cost sharing basis with State Government sharing the cost on 50:50 basis.

Gauge Conversion Cost

Cuddalore- Virudhachalam :Rs.198.68 Crores

(By Industries Department) Chennai Beach-Tambaram :Rs.520.00 Crores. including conversion of 12 Level Crossings by ROB/RUB (By Transport Department) NEW LINES: This project is implemented with State Government sharing 2/3 MRTS Project cost with the Railways sharing the remaining 1/3 cost (By Beach to Velacherry : Housing Dept).

Laying the new Broad Gauge Line between Nagappattinam and Vailankanni has been sanctioned and the Shrine Vailankanni Church Authorities have donated a sum of Rs.1 Crore to the Railways for this purpose.

This Government is also continuously impressing upon the Government of India on the need to improve the rail network and development activities like, Gauge Conversion, Extension of Railway Line and Augmentation of railway facilities etc. in Tamil Nadu. The Railway Ministry has been requested by this Government for the enhanced allotment of funds for the ongoing projects in Tamil Nadu and also to take up the following projects for the socio-economic development of this region.

Quadrupling of railway line between Pattabiram and Arakkonam.

New railway line between Avadi and Sriperumputhur. Gauge Conversion of Nagore-Karaikkal and Thanjavur-Villupuram Sections.

New railway line between Sathyamangalam and Palani (via) Tiruppur-Kangeyam-Dharapuram.

During the current year, Government of India have agreed for the quadruplication of railway line between Pattabiram -- Arakkonam.

The Ministry of Railways have recently taken a policy decision to introduce Computerised Passenger Reservation System in all the District headquarters. They have approached this Government for allotment of 500 sq. ft. area building for housing this Passenger Reservation System centre at free of cost, at places which do not have rail head like Namakkal and Perambalur. This Government have accepted this request and have agreed to provide a building having an area of 500 sq. ft. for housing this Passenger Reservation System centres both at Namakkal and at Perambalur. As soon as the Railway authorities selects this place in consultation with the District Collectors the PRS centres will start functioning from these places.

This Government had earlier approached the Government of India for the speedy conversion of the Meter Gauge track between Thanjavur and Kumbakonam before the festival, which will be held in the year 2004. Government of India have now taken up this work on priority basis and have started the works for Gauge conversion between Thanjavur and Kumbakonam to complete it before Mahamaham 2004.

19. 0 CIVIL AVIATION:

Due to the sustained efforts of this Government and also to cater to the growing traffic needs, the Airport Authority of India have decided to expand the runway in Trichy, Madurai and Coimbatore Airports and also to install Approach Lighting System etc., for the operation of the Wide Bodied Aircrafts.

Action has been taken to acquire 19.12.05 Hectares of Land for Trichy Airport, 24.61.00 Hectares of Land for Madurai Airport and 45.96.00 Hectares of Land for Coimbatore Airport. Llands have been handed over at Trichy and Madurai. Though the other Airports at Salem and Thoothukudi are not in proper operation, due to lack of passenger support and dis-interest by private operators to operate their Aircrafts, this Government is striving hard to put them in operation. This Government has also approached the Government of India for forming new Airports at Thanjavur and Kanyakumari for the benefit of the tourists.

20. 0 MADRAS FLYING CLUB:

Government are also supporting Madras Flying Club by way of Subsidy in their endeavor to encourage Civil Flying and also to assist students from poor community to acquire Pilot Licenses. A fixed subsidy of Rs.3.80 Lakhs and a fuel subsidy of Rs.3.72 Lakhs are sanctioned to Madras Flying Club in each year. Besides, the Government have ordered for the sanctioning of scholarships for 10 students each for getting their Private Pilot License Training and Commercial Pilot License Training.

R. VISWANATHAN MINISTER FOR TRANSPORT